Andy Coulson knew about phone hacking on the News of the World and did nothing to stop it happening, according a courtroom statement from the tabloid's chief reporter who once worked for him.

Effectively giving evidence for the first time, Neville Thurlbeck said via his lawyer that his former editor Coulson was "not accurate" when he testified in the phone-hacking trial that he gave directions to stop the illegal eavesdropping.

Thurlbeck said other senior people on the paper also knew about hacking. "It was known to and approved by more senior figures," said Hugh Davies QC at the Old Bailey, acting for Thurlbeck.

Davies cited Coulson and the former managing editor Stuart Kuttner as those with knowledge of hacking, plus others including a News International lawyer.

Thurlbeck pleaded guilty to phone hacking before Coulson's trial started eight months ago, and made the statement via his barrister at the opening of the sentencing hearing. He was not called to give evidence during the trial itself.

Davies said the fact that phone hacking was known and encouraged at a senior level should be a mitigating factor in his client's sentencing.

Thurlbeck hacked David Blunkett's phone in July 2004 and during the trial Coulson testified that this was the only incident of hacking of which he had been aware. The former editor said he was shocked and angered by the hacking and ordered Thurlbeck to stop.

Thurlbeck rejected this account of events, Davies said. "That is simply not accurate. No such disapproval of the practice was given by Mr Coulson. There was no direction to stop."

On Tuesday last week Coulson was found guilty by a jury of conspiracy to hack phones. Both Kuttner and Rebekah Brooks, editor of the tabloid before Coulson, were found not guilty at the end of the eight-month hearing.

A second senior News of the World executive said hacking was "endemic" on the paper and was "condoned and encouraged by very senior management" for the "expedient reason" that it was cheaper than launching full investigations.

In a mitigation statement given on behalf of James Weatherup, a former news editor who also pleaded guilty, Charles Bott QC said the "suggestion that phone hacking was the work of a small clique is wrong and misleading".

He added that Weatherup said he gave instructions to the tabloid's specialist phone-hacker Glenn Mulcaire but only did so because it was the "standing policy" when he joined the paper in 2004.

Weatherup was one of five in the dock at the Old Bailey on Monday, appearing alongside Coulson, Thurlbeck, Mulcaire and another former news editor, Greg Miskiw. Mitigation continues on Tuesday and they will all be sentenced on Friday.